Rent of Buy? Why Buying a Home Is Often a Better Choice
Many experts have been saying that the “American Dream” of owning a home is dead. However, according to a 2018 survey by real estate website Trulia.com, 73 percent of people surveyed said that homeownership is part of their American dream.
With that in mind, here are a few reasons why it’s often a better choice to buy rather than rent:
Buying a Home May Be Less Expensive Than Renting: You may have a large initial cost when you buy, but with today’s low interest rates, it may be less expensive in the long run to buy rather than rent. Although it may depend on what area you’re buying or renting in—urban vs. suburban vs. rural—and market conditions in those areas, if you’re planning on staying in a home for at least 3-5 years, it may be a better fiscal choice to buy.
Real Estate Is Almost Always a Good Investment: Although there may be other investments that have better returns, those investments often come with quite a bit of risk. Real estate, however, is often a less risky investment. In looking at real estate in a historical context, home prices have risen over any 10-year period since the 1940’s.
You Won’t Be at the Mercy of a Landlord or a Property Owner: The list of inconveniences for tenants is a long one. For many renters, having a landlord or a property owner—who can terminate the lease or raise the rent at any time—probably tops that list. The freedom to change or alter a home in even the simplest of ways—such as installing blinds or doing minor landscaping—is often severely limited in a rental.
Part of Your Monthly Housing Payment Goes to Your Bottom Line: As a renter, 100 percent of your monthly payments goes to your landlord and property owner; you have no equity or stake in the property. However, when you buy a home, you begin to accrue value immediately—and as you pay down more and more of the principal on your mortgage, you can really reap the benefits of that home equity.
There’s No Other Feeling Quite Like Owning a Home: As anyone who has ever purchased a home will tell you, that first day that you walk into your new home is a cause for celebration. It’s your home. It’s no one else’s. You’re the owner. It may just be psychological, but there’s definitely a special feeling that comes with owning your own home.
True, owning a home is not for everyone and there are situations in which renting does make more sense. However, as 73 percent of Americans have said, buying and owning a home is still a big part of the American dream.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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